AN  ADDRESS 


EROM 


THE  PRESIDENT  AND  DIRECTORS 


THE  PENNSYLVANIA  COMPANY 


FDR  INSURANCES  ON  LIVES  AND  GRANTING  ANNUITIES*, 


TO  THE 

INHABITANTS  OF  THE  UNITED  STATES, 


UPON  T1IE  SUBJECT  OF 


THE  BENEFICIAL  OBJECTS  OF  THAT  INSTITUTION 


PHILADELPHIA: 

PRINTED  JiY  i.  MAXWELL,  FOR  THE  COMPANY. 


US14< 


36%,3 


ADDRESS,  &c* 


Fellow  Citizens, 

Among  the  various  modes  of  alleviating  the  mis¬ 
fortunes  and  calamities  of  life,  which  have  been  adopt¬ 
ed  by  the  inhabitants  of  Europe,  none  has  more  deser¬ 
vedly  engaged  the  attention  of  the  enlightened  and 
benevolent,  than  the  establishment  of  institutions  for  in- 
surances  on  lives  and  granting  annuities .  In  Great 
Britain  especially  has  this  subject  been  amply  studied 
and  pursued,  and  there  have  the  benefits  resulting  from 
the  most  laudable  exertions,  been  most  extensively  dis¬ 
played.  Innumerable  are  the  instances  wherein  families 
and  individuals  enjoy  the  comforts  or  the  affluence  of 
life,  who,  without  the  aid  of  such  establishments,  would 
have  been  reduced  to  want.  In  America  too,  instances 
are  within  our  knowledge,  in  which  widows  and  children 
have  derived  a  respectable  subsistence  from  the  same 
source,  owing  to  the  wise  and  prudent  precautions  of 
their  husbands  or  fathers,  and  have  thus  been  rescued 
from  poverty  and  distress.  But  in  these  cases  resort 
has  been  had  to  the  institutions  of  England,  because, 
in  our  own  country,  no  such  associations  existed. 

The  want  of  a  company  in  the  United  States,  for  in¬ 
surances  on  lives  and  granting  annuities,  has  been  long 
experienced,  and  it  is  therefore  with  no  small  degree  of 
satisfaction,  that  the  existence  of  such  an  institution  i$ 
now  announced. 


4 


The  object  of  this  address  is  to  disseminate  through¬ 
out  the  Union,  in  as  concise  a  manner  as  the  subject 
will  admit,  some  explanation  of  the  objects  and  views 
of  this  institution,  in  order  that  that  portion  of  our  fel¬ 
low  citizens,  whose  opportunities  or  acquirements  have 
not  enabled  them  to  become  acquainted  with  the  nature 
of  life  insurances  and  annuities,  may  have  some  know¬ 
ledge  of  their  beneficial  effects.  We  do  not  wish  to 
appear  as  attempting  to  instruct  those  who  are  already 
acquainted  with  these  subjects,  but  we  most  respectful¬ 
ly  invite  all  such  to  assist  us  in  the  circulation  amongst 
their  less  informed  neighbours,  of  that  kind  of  intelli¬ 
gence,  which  may  lead  to  the  permanent  benefit  of  them  ¬ 
selves  and  of  the  institution. 

“  The  Pennsylvania  Company  for  insurances  on 
lives  and  granting  annuities”*  was  incorporated  with  a 
capital  of  half  a  million  of  dollars ,  by  an  act  of  the  legis¬ 
lature  of  Pennsylvania,  passed  on  the  10th  day  of 
March,  1812.  At  that  period  some  untoward  circum¬ 
stances,  amongst  which  was  the  expectation  of  a  war, 
depressed,  for  the  moment,  the  disposition  of  capitalists 
to  embark  in  new  enterprizes;  and  the  subsequent  de¬ 
claration  of  hostilities  against  Great  Britain,  rendered  it 
advisable  to  withhold,  for  a  time,  any  extraordinary 
exertions.  In  the  spring  however  of  1813,  the  subject 
was  resumed;  the  general  sentiment  was  in  favour  of 
the  institution,  and  the  whole  capital  stock  was  in  a  few 
days  subscribed.  It  was  not  however  deemed  advisable 
to  call  in  the  whole  capital,  inasmuch  as  few  modes  for 
the  productive  employment  of  large  sums  of  money 
presented  themselves,  and  inasmuch  as  such  a  measure 

*  For  the  charter  of  incorporation,  Which  is  perpetual,  see  appendix: 


5 


could  not  be  requisite  until  the  company  had  entered 
into  engagements  which  would  call  for  additional  secu¬ 
rity.  Twenty  per  cent .  was  considered  as  amply  suffi¬ 
cient  to  meet  any  extent  of  responsibilities  which  would 
probably  be  incurred  within  the  first  two  or  three  years, 
and  the  sum  of  one  hundred  thousand  dollars ,  was  con¬ 
sequently  collected.  As  the  business  of  the  company 
progresses  in  extent,  the  remaining  instalments  of  the 
capital  stock  will  be  called  for,  and  thus  will  additional 
security  be  afforded  as  fast  as  it  is  required.  This 
measure,  whilst  it  is  doing  justice  to  the  stockholders, 
the  directors  are  persuaded  will  prove  equally  satisfac¬ 
tory  to  those  who  may  transact  business  with  the  com 
pany;  particularly  when  it  is  recollected  that  the  asso¬ 
ciations  for  similar  objects  in  England,  many  of  which 
were  established  without  capitals ,  upon  the  principle  of 
mutual  assurance ,  have  been  generally  prosperous. 

Having  thus  shown,  as  we  suppose,  that  the  insti¬ 
tution  is  founded  upon  a  solid  and  responsible  basis, 
possessing  a  capital  adequate  to  meet  all  the  engage¬ 
ments  for  the  performance  of  which  it  may  at  any  time 
hereafter  be  pledged,  it  may  now  be  proper  to  specify 
the  particular  species  of  contracts,  into  which  the  com¬ 
pany  is  now  prepared  to  enter,  accompanied  by  an  ex¬ 
planation  of  the  nature  of  each,  for  the  information  of 
those  who  are  unacquainted  therewith. 

First,  The  company  will  make  insurances  on  lives. 

Seconly,  Grant  annuities;  and, 

Thirdly,  Contract  for  reversionary  payments;  in 
which  tatter  will  be  included  endowments  for  children. 


OF  LIFE  INSURANCES. 

An  insurance  on  a  life  is  a  contract  whereby  an  in¬ 
dividual  or  company,  in  consideration  of  a  certain  pre¬ 
mium,  undertakes  to  pay  a  stipulated  sum  of  money, 
in  case  the  person  whose  life  is  insured,  should  die  with¬ 
in  the  time  expressed  in  the  policy.  Now  an  insurance 
may  be  made  for  one  or  two  or  any  other  determinate 
number  of  years ,  or  for  the  whole  continuance  of  lifey 
as  the  parties  may  agree;  and  the  premium  charged  will 
bear  a  proper  proportion  to  the  risk.  The  premium  may 
be  made  payable  in  annual  instalments,  or  it  may  be  paid 
in  one  gross  sum,  at  the  time  of  making  the  insurance. 
The  sum  insured  too,  instead  of  being  paid  in  one  gross 
sum  at  the  death  of  the  person,  whose  life  is  insured, 
may  be  made  payable  in  animal  portions  during  the  life 
of  the  person  for  whose  benefit  the  insurance  is  made. 

The  circumstances  which  have  given  rise  to  life  in¬ 
surances,  are  those  accidents  and  misfortunes  to  which 
human  nature  is  so  generally  exposed,  and  they  have 
been  instituted  for  the  purpose  of  rescuing  from  the 
afflicting  severities  of  poverty,  families  and  individuals 
who  depend  for  support  upon  some  relative  or  friend, 
of  whose  protection  they  may  by  death  be  depriveci 
But  perhaps  the  benefit  of  this  kind  of  contract  may 
best  be  illustrated  by  a  few  familiar  examples. 

1st.  A.  is  a  person,  who  in  the  pursuit  of  his  busi¬ 
ness  is  obliged  to  leave  home  upon  a  distant  journey  or 
voyage.  He  has  a  family  dependent  upon  his  exertions 
for  support,  who,  should  he  die  before  his  return,  would 
be  without  the  means  of  subsistence. 


7 


2d.  B.  is  a  merchant,  a  mechanic,  or  farmer,  who 
maintains  his  family  by  the  annual  or  daily  produce  of 
his  industry.  His  expenses  are  numerous,  and  he  is  not 
able,  with  all  his  endeavours,  to  provide  the  means  for 
the  comfortable  subsistence  of  his  family  in  case  of  his 
early  death.  But  he  sees  a  reasonable  prospect  of  being 
able,  should  his  life  be  spared  for  three,  five,  seven  or 
more  years,  to  amass  an  estate  that  will  render  their 
situation  comfortable  after  his  decease. 

3d.  C.  is  a  public  officer  or  clerk  in  some  perma¬ 
nent  employment,  who  receives  a  salary  sufficient  for 
his  support,  but  has  no  resources  or  expectation  for  his 
family  after  his  death. 

All  these  men  perhaps  are  so  circumstanced  that  by 
prudence  or  economy,  they  can  save  from  their  annual 
revenues,  without  feeling  the  privation,  a  sufficient  sum 
to  pay  such  a  premium  as  would  entitle  their  families  to 
receive  after  their  death,  an  amount  sufficient,  or  an 
annuity  adequate,  to  maintain  them  with  comfort  and 
perhaps  independence,  and  all  such  men  should  em 
brace  without  hesitation  the  opportunity  now  offered 
them.  Again, 

4th.  D.  is  a  man  who  enjoys  a  liberal  or  competent 
income  from  the  estate  of  his  wife,  and  he  is  aware  that 
at  her  death  he  will  be  deprived  of  his  usual,  perhaps 
only  means  of  support.  Prudence  will  dictate  to  this 
man  to  effect  an  insurance  on  the  life  of  his  wife,  so 
that  after  her  death  he  will  have  another  resource  from 
which  he  may  derive  his  subsistence. 

5th.  E.  is  a  man  who  enjoys  an  income  from  an  es  ¬ 
tate  during  his  life ,  and  is  desirous  of  borrowing  money 
for  some  speculation  or  other  purpose,  but  can  find  no 


8 


one  who  is  willing  to  lend  it  upon  the  security  of  his. 
estate,  on  account  of  the  uncertainty  of  the  continuation 
of  his  life.  But  he  can  accomplish  his  design  by  caus¬ 
ing  an  insurance  to  be  made  upon  his  life,  which  will 
entitle  the  lender  to  recover  from  the  insurers  the 
amount  of  his  debt,  in  case  it  shall  not  have  been  repaid 
before  the  death  of  the  borrower. 

Instances  may  sometimes  occur  wherein  the  con¬ 
tinuance  of  a  person’s  life  is  of  serious  importance  to 
another,  who  is  not,  as  in  the  case  of  a  family,  depend¬ 
ent  on  him  for  support.  A  copartner  in  trade  is  fre¬ 
quently  interested  to  a  large  amount  in  the  duration  of 
his  associate’s  life;  and  we  recollect  one  instance  in 
which  a  merchant  had  30,000  dollars  dependent  upon 
the  safe  return  of  another  from  a  distant  voyage,  whose 
life  was  in  consequence  thereof  insured.  But  there  are 
cases  in  which  this  species  of  contract  will  be  likely  to 
prove  highly  advantageous  to  our  fellow  citizens  in  the 
humble  walks  of  life.  Insurances  may  be  made  for 
small  sums,  even  though  they  be  only  sufficient  to  de¬ 
fray  the  funeral  expenses  of  a  person  who  may  perhaps 
die  in  such  a  state  of  poverty  and  distress,  as  not  to 
leave  a  sufficiency  for  that  necessary  duty,  or  for  the 
temporary  relief  of  their  families  under  an  unexpected 
bereavement. 

It  must  be  evident  that  life  insurances ,  like  all  other 
contracts  of  a  similar  nature,  are  founded  upon  calcula¬ 
tions  of  chances;  and  that  the  premiums  charged  there¬ 
on,  must  depend  upon  the  age,  state  of  health,  occupa¬ 
tion  and  residence  of  the  person  insured.  The  life  of 
a  young  man  will  be  insured  for  less  than  that  of  an  old 
inan:  a  healthy  person,  for  less  than  a  sickly  one:  a  man 


9 


pursuing  a  profession  of  a  safe  kind,  for  less  than  one 
exposed  to  dangers;  and  a  person  resident  in  a  healthy 
country,  for  less  ihan  one  who  lives  in  a  sickly  climate 
or  situation. 

A  long  and  studied  attention  to  the  bills  of  mortali¬ 
ty  in  England,  and  elsewhere,  have  enabled  writers  and 
calculators  upon  the  subject  of  life  insurance,  to  form 
tables  by  which  the  chances  of  living  to  any  certain  pe¬ 
riod  amongst  a  certain  number  of  healthy  persons  of  the 
same  age,  are  so  well  ascertained,  that  any  one  may  see 
at  once,  what  premium  would  be  considered  as  equiva¬ 
lent  to  the  risk  sustained  by  a  company,  who  would  in¬ 
sure  his  life  for  any  given  number  of  years.  Some  of 
these  tables  are  to  be  found  in  the  appendix  to  this 
pamphlet,  to  which  we  beg  the  serious  attention  of  the 
reader,  with  a  request,  that  should  he  not  be  able  to  com¬ 
prehend  them,  he  will  inquire  for  an  explanation  from 
some  of  his  neighbours  who  are  better  informed. 

OF  ANNUITIES. 

An  annuity  is  an  allowance  payable  annually,  half 
yearly  or  quarterly,  as  the  case  may  be,  by  an  individual 
or  company  during  the  lifetime  of  a  person ,  in  con¬ 
sideration  of  having  received  some  gross  sum  from  that 
person  or  some  other.  An  annuity  may  be  either  im¬ 
mediate  or  deferred.  An  immediate  annuity  is  where 
the  payment  commences  immediately  after  the  contract. 
A  deferred  annuity  is  where  the  payment  does  not  com¬ 
mence  until  after  a  specified  length  of  time,  as  3,  5,  or 
7  years;  or  until  after  the  occurrence  of  some  particular 
event,  as,  for  instance,  the  death  of  some  other  person. 
Annuities  may  be  also  contracted  for,  payable  during  the 

B 


10 


continuance  of  two  or  more  joint  lives,  as  to  a  man,  his 
wife  and  children,  and  to  the  survivors  of  them. 

The  object  for  which  annuities  were  instituted,  was 
to  enable  persons  not  having  a  sufficient  income  to 
maintain  themselves,  or  not  being  able  to  pursue  their 
usual  occupations  for  support,  to  provide  against  the 
infirmities  of  old  age,  inability  to  labour,  or  some  other 
mischance  which  might  reduce  them  to  want.  But  the 
utility  thereof  can,  possibly,  be  best  exemplified,  as  in 
the  former  case  of  life  insurance,  by  stating  a  few  of 
the  instances  which  most  frequently  come  within  our 
notice. 

1st.  A.  is  a  single  man,  who  from  age  or  infirmity 
is  no  longer  capable  of  procuring  a  maintenance,  but  is 
possessed  of  some  property,  the  income  of  which  is  not 
adequate  to  his  support.  Every  year  he  consumes  a 
portion  of  his  principal,  and  he  evidently  perceives  that 
should  his  life  be  prolonged  for  a  number  of  years  he 
will  expend  all  his  substance,  and  thus  be  reduced  to 
absolute  want.  This  man,  by  appropriating  in  time 
what  he  possesses  to  the  purchase  of  an  annuity,  may 
perhaps  find  that  his  income  may  be  increased  to  such 
an  amount  as  will  render  his  future  days  comfortable, 
and  free  him  from  all  those  anxieties  to  which,  in  his 
prior  situation,  he  was  exposed.  Again, 

2d.  B.  is  a  man  who  possesses  a  revenue  sufficient 
to  support  him  with  economy,  but  as  he  has  no  relatives 
to  provide  for,  is  disposed  to  employ  the  whole  of  his 
estate  in  an  annuity,  in  order  that  he  may  enjoy  the  su¬ 
perfluities  of  life,  or  devote  a  larger  share  of  his  income 
to  purposes  of  charity.  A  reference  to  the  tables  an¬ 
nexed  will  show  that  this  man  may  considerably  in- 


ii 


crease,  perhaps  do  more  than  double  his  resources,  and 
at  the  same  time  remove  all  his  anxiety  respecting  th.e 
employment  of  his  capital. 

3d.  C.  and  D.  are  a  man  and  his  wife  in  the  decline 
of  life,  without  children  to  whom  they  can  look  for  as- 
sistance  in  their  latter  days,  situated  we  will  suppose  in 
point  of  circumstances,  like  either  of  those  described 
in  the  two  former  cases.  By  employing  their  property 
in  the  purchase  of  an  annuity  payable  during  the  lives 
of  both,  and  after  the  death  of  one,  during  the  life  of 
the  surviver,  they  can  perhaps  render  their  situation  in¬ 
dependent  or  affluent. 

4th.  E.  is  a  person  having  dependent  upon  him 
some  relative  or  friend,  who,  from  infirmity,  old  age,  or 
intemperate  habits,  is  incapable  of  supporting  himself, 
and  who  after  the  death  of  his  patron  will  be  reduced  to 
the  most  abject  poverty.  He  is  desirous  of  devoting  a 
portion  of  his  wealth  to  provide  for  the  permanent  sub¬ 
sistence  of  the  object  of  his  benevolence,  and  finds  that 
he  can  effectually  accomplish  his  design  by  procuring 
an  annuity  for  him.  All  the  preceding  cases,  it  will  be 
observed,  are  immediate  annuities .  We  shall  now  ex¬ 
emplify  a  few  that  are  deferred . 

5th.  F.  is  a  man  in  the  present  possession  of  proper¬ 
ty,  who  sees  .before  him  a  reasonable  prospect,  by  his 
exertions  and  industry,  of  maintaining  himself  and 
family  for  some  years  to  come:  but  he  is  desirous  to 
guard  against  misfortunes  or  inability  which  might 
thereafter  assail  him,  and  deems  the  best  mode  of  attain¬ 
ing  his  object  to  be,  to  purchase  an  annuity  on  his  own 
life,  or  the  lives  of  himself  and  wife,  and  the  surviver, 
to  commence  at  the  distant  day  which  he  contemplated: 
or,  he  is  persuaded  that  as  long  as  he  lives  he  can  main- 


12 


tain  his  family,  but  is  desirous  of  providing  for  his  wife 
after  his  death,  which  he  is  completely  enabled  to  do  by 
the  purchase  of  an  annuity  to  be  paid  to  his  wife  during 
her  life  and  to  commence  at  his  death,  whenever  that 
should  occur. 

These  are  amongst  the  principal  instances  in  which 
the  purchase  of  annuities  may  be  beneficial  to  individuals 
and  families;  and  we  doubt  not  that  many  will  take  ad¬ 
vantage  of  the  opportunity  now  afforded  them  by  the 
establishment  of  the  Pennsylvania  Company.  It  need 
scarcely  be  remarked  that  from  the  nature  of  this  con* 
tract  it  is  one  which,  like  insurances,  depends  on  calcu¬ 
lations  of  chances.  A  certain  number  of  annuitants  will 
die  before  they  have  lived  to  the  period  of  life  upon 
which  the  calculation  is  founded,  which  affords  to  the 
company  an  average  profit  adequate  to  meet  the  losses 
which  they  will  sustain  by  others  living  beyond  the 
time  contemplated. 

We  shall  now  proceed  to  an  explanation  of  the  third 
branch  of  business  to  which  the  institution  extends  its 
views. 

OF  REVERSIONS. 

A  reversionary  payment  is  that  sum  which  a  person 
in  consideration  of  a  certain  amount  paid  by  him,  or 
some  other,  to  an  individual  or  company,  will  be  entitled 
to  receive  at  a  future  day,  provided  he  should  live  so  long . 
This  species  of  contract  rests  upon  the  principle  of  a 
deferred  annuity ,  but  differs  from  it  in  the  circumstance 
ot  its  being  payable  in  a  gross  sum  instead  of  periodical 
instalments.  It  is  evident,  therefore,  that  the  same  in¬ 
stances  which  were  enumerated  in  speaking  of  deferred 


annuities  will  apply  to  reversions,  if,  instead  of  annual 
payments,  a  gross  sum,  equivalent  thereto,  should  be 
stipulated.  But  we  will  quote  a  few  examples  of  what 
are  called  endowments . 

A.  is  a  man  of  moderate  fortune,  who  has  a  number 
of  young  children,  neither  of  whom,  after  his  death,  will 
have  a  sufficiency  for  support.  He  is,  therefore,  anxious 
to  provide  respectable  marriage  portions  for  his  daugh¬ 
ters,  and  capitals  for  his  sons  wherewith  they  may  enter 
into  business.  If  he  be  a  merchant,  he  may  unexpect¬ 
edly,  by  the  casualties  of  trade,  be  reduced  to  indigence; 
but  he  can,  without  inconvenience  to  his  accustomed 
mode  of  living,  annually  devote  a  portion  of  his  wealth 
to  the  purpose  of  securing  to  one  or  more  of  his  chil¬ 
dren,  should  they  live  to  the  age  of  eighteen  or  twenty- 
one,  a  liberal  establishment.  This  is  to  be  effected  by 
the  purchase  of  a  reversion  dependant  on  their  lives; 
and  although  he  would  be  a  loser  should  the  children 
die  before  the  age  specified,  yet  it  is  a  loss  which  he 
could  reasonably  afford,  inasmuch  as  he  would  no  longer 
have  to  incur  the  expenses  of  their  education  and  sup¬ 
port. 

B.  is  a  mechanic,  a  farmer,  or  other  person,  who 
maintains  a  numerous  family  of  children  by  his  indus¬ 
try,  but  who  sees  no  prospect  of  assisting  them  in 
life  when  they  arrive  at  full  age.  He.  would  like  to  give 
his  sons  small  stocks  to  enable  them  to  begin  their 
trades,  and  to  his  daughters  a  sufficiency  to  purchase 
furniture  towards  house-keeping.  He  can  spare  a  small 
sum  from  his  annual  earnings,  whilst  his  children  are 
young,  and  by  appropriating  it  to  the  purchase  of  a  re¬ 
version  on  the  life  of  each,  completely  effects  his  object. 


14 


Prudent  wives  too,  who  have  prodigal  and  dissipated 
husbands,  might,  from  the  wreck  of  their  property,  by 
careful  management,  provide  in  this  manner  for  their 
own  and  their  children’s  future  comfort. 

Having  now  in  a  plain  and  concise  manner,  adapted, 
as  we  suppose,  to  the  comprehension  of  most  readers, 
explained  the  nature  of  life  insurances,  annuities  and  re¬ 
versions,  and  the  extensive  advantages  which  may  re¬ 
sult  from  the  establishment  of  this  institution,  it  remains 
for  us  to  say  something  concerning  the  rates  which  will 
be  charged  by  the  company  upon  the  transaction  of  their 
business. 

OF  THE  RATES. 

As  it  is  of  the  utmost  importance  to  the  permanent 
stability  of  the  institution,  as  it  respects  the  interest  of 
the  present  and  future  stockholders,  as  well  as  that  of 
present  and  future  annuitants  and  persons  assured,  that 
those  who  now  have  the  direction  of  its  affairs  should 
act  with  proper  foresight  and  prudence  in  determining 
the  rates  to  be  demanded  for  premiums  and  annuities, 
it  may  be  useful  to  hear  what  has  been  said  in  other 
countries  on  the  subject  by  wise  and  experienced  men, 
and  especially  to  attend  to  the  counsel  which  was  given 
many  years  ago,  by  the  Reverend  Dr.  Richard  Price,  on 
a  similar  occasion,  to  the  society  for  equitable  assuran , 
ces  on  lives  and  surviverships  in  London,  where  he  ex¬ 
presses  himself  as  follows:  viz. 

First.  They  should  consider  what  distress  would 
arise  from  the  failure  of  such  a  scheme  in  any  future 
time,  and  what  dangers  there  are  which  ought  to  be 
carefully  guarded  against  in  order  to  secure  success.  I 


15 


have  alreadv  more  than  once  observed  that  those  per¬ 
sons  will  be  most  for  flying  to  these  establishments  for 
insurances  who  have  feeble  constitutions,  or  are  sub¬ 
ject  to  distempers  which  they  know  render  their  lives 
particularly  precarious;  and  it  is  to  be  feared  that  no 
caution  will  be  sufficient  to  prevent  all  danger  from 
hence.” 

Again:  “  In  matters  of  chance,  it  is  impossible  to 
say  that  an  unfavourable  run  of  events  will  not  come*, 
which  may  hurt  the  best  contrived  scheme.  The  cal¬ 
culations  only  determine  probabilities ,  and  agreeably  to 
these  it  may  be  depended  on,  that  events  will  happen 
on  the  whole .  But  at  particular  periods  and  in  particular 
instances,  great  deviations  will  often  happen,  and  those 
deviations,  at  the  commencement  of  a  scheme,  must 
prove  either  very  favourable  or  very  unfavourable. 

“  But  further.  The  calculations  suppose  that  al! 
the  monies  received  are  put  out  immediately  to  accumu¬ 
late  at  compound  interest.  They  make  no  allowance 
for  losses  or  for  any  of  the  expenses  attending  manage¬ 
ment.  On  these  accounts  the  payments  to  a  society  of 
this  kind  ought  to  be  more  than  the  calculations  will  war¬ 
rant,  and  the  interest  money  ought  to  be  reckoned  low. 
Mr.  Dodson,  I  find,  has  paid  due  attention  to  all  this  by 
reckoning  interest  in  his  calculations  for  this  society  at 
three  per  cent,  and  taking  the  lowest  of  all  the  known 
probabilities  of  life,  or  those  deduced  from  the  London 
bills  of  mortality. 

“  Certainly  a  society  that  means  to  be  a  permanent 
advantange  to  the  public,  ought  always  to  take  higher 
rather  than  lower  values,  for  the  sake  of  rendering  itself 


16 


more  secure,  and  gaining  some  profits  to  balance  losses 
and  expenses.”  Price,  vol.  ii.  sec.  7. 

Before  Dr.  Price’s  time  of  writing  these  advices, 
several  associations  of  this  kind  in  London,  by  trans¬ 
acting  business  at  too  low  rates,  had  involved  themselves 
“  embarrassments,  so  as  to  be  obliged  to  discontinue 
their  business;  but  the  society  above  named,  to  whom 
they  were  addressed,  by  attending  thereto,  have  pro¬ 
gressed  from  that  time  to  the  present  in  uninterrupted 
prosperity. 

Their  business  has  been  so  extensive  that  in  33 
years,  from  January  1768,  to  January  1801,  they  made 
83,201  insurances  on  single  lives  alone,  which  is  more 
upon  an  average  than  2500  per  annum. 

The  present  Directors  of  “  The  Pennsylvania  Com- 
pamf  have  duly  considered  this  wise  and  prudent 
counsel,  advanced  by  a  man  eminently  qualified  there¬ 
for,  and  especially  as  a  due  regard  for  his  equitable  and 
cautious  system  has  proved,  by  an  experience  of  more 

than  forty  years,  so  highly  beneficial  to  a  similar  insti-. 
tution. 

Before  the  rates  proper  to  be  demanded  can  be 
determinately  fixed,  it  is  necessary  to  ascertain  the  rate 
of  compound  interest  at  which  the  Company  will  be 
able  permanently  to  improve  their  monies  for  a  course 
of  fifty  years  to  come,  clear  of  all  losses,  by  sums  lying 
at  intervals  unproductive  for  a  week,  a  month  or  more 
at  a  time,  and  also  clear  of  all  losses  which  might  possi¬ 
bly  occur  from  insufficient  securities  taken  from  mort¬ 
gagers  or  others.  By  the  nature  of  such  an  institu¬ 
tion,  its  contracts  made  at  the  present  day,  extend  their 
consequences  and  effects  to  distant  times  and  to  future 


17 


generations.  An  annuity  now  purchased  for  a  child  of 
tea  years  of  age,  might  continue  to  be  payable  for 
seventy  or  eighty  years  to  come,  and  it  is  therefore  of 
the  utmost  importance,  and  to  the  interest  of  all  con¬ 
cerned,  that  the  strictest  caution  should  be  observed 
from  the  commencement,  in  order  that  annuitants  and 
persons  assured  should  ever  be  impressed  with  a  firm 
conviction  of  the  solid  foundation  of  the  institution,  and 
of  its  entire  capacity  to  comply  with  all  its  engagements. 

Impressed  with  these  and  other  similar  considera¬ 
tions,  the  Directors  are  firmly  of  opinion  that  although 
the  legal  interest  of  Pennsylvania  is  six  per  cent,  they 
will  not  be  able  to  employ  their  capital  and  the  money 
received  by  them,  permanently  during  states  of  peace 
and  war,  as  they  may  occur,  at  a  higher  rate  than  jive  and 
an  half  per  cent .  compound  interest.  Upon  this  datum 
then,  are  their  calculations  founded;  and  they  doubt  not 
that  the  reasonableness  of  their  position  will  appear 
manifest  to  all,  who  are  in  any  wise  conversant  with  the 
employment  of  large  sums  of  money. 

With  these  remarks  the  Directors  conclude  their 
address,  respectfully  soliciting  the  attention  of  all  persons 
into  whose  hands  it  may  hill,  and  requesting  them  to 
make  its  contents  known  to  those  of  their  friends  and 
neighbours,  who  are  in  a  situation  to  be  benefited  by 
the  opportunities  hereby  afforded  them. 


c 


APPENDIX. 


RULES  OF  THE  COMPANY. 

Every  person  desirous  to  make  assurance  with  tlie 
Company  must  sign  a  declaration  by  himself  or  agent, 
setting  forth  the  age,  state  of  health,  profession,  occupa¬ 
tion,  residence,  and  other  circumstances  of  the  persons 
whose  lives  are  proposed  to  be  assured:  and  also,  in 
case  such  assurance  is  made  upon  the  life  of  another 
person,  that  the  interest  which  he  has  in  such  life  is  equal 
to  the  sum  assured.  This  declaration  is  the  basis  of 
the  contract  between  the  Company  and  the  person  de¬ 
sirous  to  make  such  assurance;  and  if  any  artful,  false, 
or  fraudulent  representation  shall  be  used  therein,  all 
claim  on  account  of  any  policy  so  obtained,  shall  cease, 
determine,  and  be  void;  and  the  monies  which  shall  have 
been  paid  upon  account  of  such  assurance  shall  be  for¬ 
feited  to  the  use  of  the  Company. 

In  like  manner  a  declaration  will  be  required  from 
all  persons  who  apply  for  the  purchase  of  an  annuity  or 
reversion.  No  policy  takes  effect  until  the  first  pre¬ 
mium  be  paid,  and  if  any  subsequent  premium  remains 
unpaid  after  the  time  stipulated  in  the  policy,  such 
policy  becomes  void;  but  if  the  defaulter  shall,  within 
two  calendar  months  after  the  time  so  stipulated  (the 
person  on  whose  life  the  assurance  was  made  being 
then  alive  and  in  good  health)  pay  the  said  premium, 
together  with  the  additional  sum  of  ten  per  cent,  upon 


20 


such  premium,  then  such  policy  is  revived  and  con¬ 
tinues  in  force. 

AH  claimants  upon  the  decease  of  any  person  whose 
life  shall  have  been  assured  by  the  Company,  must 
make  proof  thereof  by  affidavit  or  certificate,  and  give 
such  further  information  respecting  the  same  as  the 
board  of  directors  shall  think  satisfactory. 

The  time  for  payment  of  claims  oc curing  by  death, 
is  within  sixty  days  after  proof  of  the  death  shall  have 
been  made  as  aforesaid. 

In  case  the  more  immediate  purpose  of  an  assurance 
shall  have  ceased,  and  the  owner  of  the  policy  shall  be 
minded  to  dispose  of  the  same;  or  any  person  assured 
by  the  Company,  shall  himself  stand  in  need  of  that 
assistance  which  was  intended  for  his  family,  the  Com¬ 
pany  will,  upon  application,  become  the  purchasers  of 
such  an  interest  at  a  fair  price. 

The  policies  of  persons  assured  on  their  own  lives 
become  void,  if  the  assured  die  by  their  own  hands,  by 
the  consequences  of  a  duel,  or  by  the  hands  of  justice. 

The  Company  reserves  to  itself  the  right  of  making 
any  alterations  which  the  particular  circumstances  of 
applicants  may  in  their  opinion  render  expedient. 

A  charge  of  one  dollar  will  be  made  for  each  policy 
of  assurance  or  bond  for  annuity,  besides  the  premium 
or  computed  purchase  money. 

The  office  of  the  Company  is  open  daily  between 
the  hours  of  9  and  3  o’clock,  at  No.  72,  South  Second- 
street,  in  the  City  of  Philadelphia,  where  a  committee 
of  the  directors  sit  three  times  a  week  to  consider  and 
decide  upon  the  proposals  which  may  be  made  to  them. 


21 


Letters  directed  to  the  President,  post-paid,  will  be 
speedily  attended  to,  and  answers  given  to  any  inquiries 
which  may  be  made,  respecting  the  terms  and  rates  upon 
which  the  Company  will  transact  business. 


THE  PRESENT  DIRECTORS  ARE, 


President — 
John  Bohlen , 

Joseph  Peace , 

John  Claxton , 

Jacob  Sperry , 
Cadwalader  Evans , 


Samuel  Yorker 

Joshua  Longstreth , 
Condy  Raguet , 
Charles  N.  Rancher , 
John  Welsh , 

James  Hemphill \ 


Jeremiah  Warder,  jun,  William  Schlatter , 
Actuary — Shoemaker , 


Sh 

« 

bn 

< 

1 

2 

■3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

H 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 


22 


TABLE,  No.  1. 


wing  the  expectation  of  life  in  several  places . 


Northampton,  in 
England. 

Breslaw,  in  Silesia. 

|  Philadelphia,  by  the 
Episcopal  Church. 

32.74 

33. 43 

30.91 

37.79 

38.02 

34.43 

39.55 

39.70 

35.74 

40.58 

40.66 

37.30 

40.84 

41.19 

37.91 

41.07 

41.46 

38.60 

41.03 

41.52 

38.24 

40.79 

41.25 

37.'88 

40.36 

40.86 

37.50 

39.78 

40.40 

37.12 

39.14 

39. S9 

36.74 

38.49 

39.32 

36.09 

37. 83 

38.68 

35.43 

37.17 

38.05 

34.77 

36.51 

37.40 

34.10 

35.85 

36  76 

33.43 

35.20 

36.1  1 

32.73 

34.58 

35.46 

32.02 

33.99 

34.81 

31.31 

33.43 

34.16 

30.60 

32.90 

33.50 

29  88 

32.39 

32.83 

29.40 

31.88 

32.23 

28.93 

3 1.36 

31.56 

28.46 

30.85 

30.89 

27  99 

30.33 

30.27 

27.50 

29.82 

29.64 

27.00 

29.30 

29.02 

26.50 

28.79 

28.39 

25.99 

28.27 

27.81 

25.50 

27.76 

27.22 

24.99 

27.24 

26.64 

24.59 

26.72 

26.05 

24.19 

26.20 

25.46 

23.80 

25.68 

24.92 

23.40 

25.16 

24.38 

23.01 

Philadelphia,  by  th< 
Board  of  Health. 

i 

London,  according 
to  Simpson. 

London,  according 
!  to  Price. 

25.96 

27.26 

25.10 

32.92 

32.77 

30.01 

36.80 

35.07 

32.37 

36.85 

36.08 

34.10 

36.94 

36.31 

35.28 

37.02 

36.33 

35.57 

36.42 

36.17 

35.73 

35.83 

35.83 

35.57 

35.23 

35.45 

35.30 

34.59 

34.96 

34.91 

33.95 

34.43 

34.46 

33.20 

33.90 

34.02 

32.44 

33.30 

33.52 

31.68 

32.70 

32.95 

30.92 

32.08 

32.32 

30.16 

31.47 

31.69 

29.38 

30.S6 

31.11 

28.60 

30.24 

30.53 

27.82 

29.62 

29.95 

27.04 

29.00 

29.37 

26.25 

28.44 

28.78 

24.57 

27.88 

28.26 

25.19 

27.30 

27.73 

24.67 

26.74 

27.20 

24.14 

26.24 

26.67 

23.61 

25.73 

26.14 

23.08 

25.22 

25.60 

22.55 

24.71 

25.07 

22.01 

24.21 

24.60 

21.48 

23.76 

24.12 

20.93 

23.32 

23.65 

20.65 

22.87 

23  17 

20.40 

22.44 

22.70 

20.16 

22.00 

22  23 

19.95 

21.57 

21.76 

19.76 

21.15 

21.30 

TABLE,  No.  I. — continued. 
Showing  the  expectation  of  life  in  several  places • 


c 

.aj 

<u  . 

■fj  xi 

2 

X  G 

by  the 

alth. 

to 

.5 

%  A 

to 

.5 

r2  • 

Age. 

fl? 

•5  M 

00 

c 

i 

.2  5 

Jl 

J-r'o 

-ST2 

o  © 

2f 

C 

O  - 

on,  acco 

to  Price 

o 

a> 

« 

•3  2. 

rt  aS 

ra  © 

rC  n 

pH 

V  ° 

-a . 

G 

3 

37 

24.64 

23.83 

22.64 

19.57 

20.72 

20.83 

38 

24.12 

23.29 

22.23 

19.40 

20.30 

20.34 

39 

23.60 

22.74 

21.83 

19.25 

19.89 

19.91 

40 

23.08 

22.19 

2  1 .44 

19.15 

19.55 

19  50 

41 

22.56 

21.64 

21.05 

19.09 

19.22 

19.12 

42 

22.04 

21.08 

20.80 

18.77 

18.90 

18.78 

43 

21.54 

20.57 

20.22 

18.54 

18  60 

18.36 

44 

21.03 

20.07 

19.82 

18.18 

18.24 

17.99 

45 

20.52 

19.56 

19.42 

17.91 

17.89 

17.64 

46 

20.02 

19.05 

18.99 

17.64 

17.55 

17.29 

47 

19.51 

18.55 

18.55 

17.44 

17.22 

16.96 

48 

19.00 

18.04 

18.14 

17.24 

16.83 

16.65 

49 

18.49 

17.53 

17.73 

17.02 

16.45 

16  26 

50 

17.99 

17.07 

17.32 

16.82 

16.08 

15.90 

51 

17.50 

16.61 

16.92 

16.66 

15.71 

15.50 

52 

17.02 

.16.16 

16.52 

16.31 

15.36 

15.20 

53 

16.54 

15.71 

16.13 

15.97 

15.00 

14.79 

54 

16.06 

15.26 

15.75 

15.64 

14.70 

14.39 

55 

15.58 

14.77 

15.40 

15.33 

14.30 

13.92 

56 

15.10 

14.28 

15.04 

14.97 

13.9  1 

13.46 

57 

14.63 

13.78 

14.68 

14.62 

13.53 

13.00 

58 

14.15 

13.29 

14.35 

14.31 

13.16 

12.53 

59 

1.3.68 

12  80 

14.04 

14.00 

12.81 

12.08 

60 

13.21 

12.31 

13.75 

13.71 

12.48 

11.71 

61 

12.75 

1  1.81 

13.48 

13.44 

12.16 

11.35 

62 

12.28 

1 1.32 

13  04 

13.06 

1  1.75 

10.93 

63 

1 1.81 

10.83 

12.60 

12.68 

1  1.36 

10.51 

64 

1  1.35 

10.35 

12.17 

12.25 

10.98 

10.10 

65 

10.88 

9.86 

11.70 

11.82 

10.62 

9.71 

66 

10.42 

9.37 

1  1.23 

11.41 

10.27 

9.33 

67 

9.96 

8.89 

10.76 

1  1.00 

9.95 

8.97 

68 

9.50 

8.41 

10.30 

10.60 

9.65 

8.63 

69 

9.05 

7.93 

9.83 

10.21 

9.3S 

8.32 

70 

8.60 

7.45 

9.37 

9.83 

9.15 

8.04 

71 

8.17 

7.03 

8.92 

9.48 

8.83 

7.68 

72 

7.74 

6.63 

8.54 

9.15 

8.53 

7.36  * 

24 


TABLE,  No.  I. - CONTINUED. 


Shouting  the  expectation  of  life  in  severed  places. 


g 

at 

v  . 

% 

to 

c 

to 

.S 

jB 

>»  j- 
-C  3 

-Q  ’e< 

'H  (3 

Age. 

hampto: 

ingland 

C» 

G 

g 

Philadelphia, 
Episcopal  Ch 

4= 

U'o 

o  o 

8  a 

84  £ 
cin 

>n,  accoi 
to  Price 

o 

£ 

"m 

5 

S 

”3  ° 

'-3  « 
pH 

'S  2 

o 

J 

a 

s 

73 

7.33 

6.25 

8.16 

8.84 

8.28 

7.07 

74 

6.92 

5.90 

7.75 

8.47 

8.07 

6.69 

75 

6.54 

5.51 

7.43 

8.23 

7.74 

6.3S 

-  76 

6.18 

5.15 

7.06 

7.78 

7.45 

6.01 

77 

5.83 

4.84 

6.72 

7.50 

7.00 

5.7  3 

78 

5.48 

4.59 

6.40 

7.25 

6.56  : 

5.53 

79 

5.11 

4.34 

6.15 

7.07 

6.12 

5.22 

80 

4.75 

4.09 

5.95 

6.97 

5.70 

4.98 

81 

4.41 

3.82 

5.86 

7.00 

5.30 

4.59 

82 

4.09 

3.56 

5.40 

6.65 

4.93 

4.23 

83 

3.80 

3.19 

4.94 

6.33 

4.60 

3.94 

84 

3.58 

2.76 

4.50 

6.00 

4.S2 

3.73 

85 

3.37 

2.37 

4.07 

5.85 

4.14 

3.32 

86 

3.19 

2.05 

3.66 

5.50 

3.75 

2.94 

87 

3.01 

1.63 

3.30 

5.17 

3.40 

2.64 

88 

2.86 

1.30 

3.00 

4.92 

3.12 

2.50 

89 

2.66 

84 

2.83 

4.75 

3.00 

2.00 

90 

2,41 

50 

4.73 

2.50 

1.50 

25 

TABLE,  No.  II. 

Showing  the  premium  of  insurance  on  a  single  life ,  for  one 
and  seven  years ,  and  for  the  ivhole  duration  of  life ,  to  se¬ 
cure  to  the  nominee,  or  to  the  lawful  representative  of  the 
assured,  the  sum  of  one  hundred  dollars,  upon  the  demise 
of  the  life  insured. 


S 

=5 

3 

| 

6 

'g 

<L> 

bo 

< 

s 

aj 

f-c 

c, 

Sh 

a  • 

«s  g 

X 

c3  £ 

£  <L> 

1 1 
ri 

fc/3 

■< 

s 

g 

cx 

u 

1  £  2 

S  £ 

I  S 
§'§ 

One  ye; 

OJ 

> 

<D 

CO 

'o  & 

1 

s 

<u 

a 

O 

cl 

> 

4J 

CO 

1  ^ 

£ 

8  a 

14 

98 

1.18 

2.06 

41 

2.31 

2.50 

3.82 

15 

99 

1.25 

2.12 

42 

2.39 

2.56 

3.93 

16 

1.06 

1.35 

2.18 

43 

2.45 

2.63 

4.04 

17 

1.16 

1.43 

2*24 

44 

2.50 

2.71 

4.16 

18 

1.27 

1.51 

2.29 

45 

2.56 

2.79 

4.29 

19 

1.37 

1 .56 

2.35 

46 

2.62 

2.89 

4.41 

20 

1.50 

1.62 

2.39 

47 

2.69 

2.99 

4.54 

21 

1.59 

1.66 

2.45 

48 

2.76 

3.10 

4.68 

22 

161 

1.68 

2.49 

49 

2.87 

3  21 

4.82 

23 

1.63 

1.70 

2.54 

50 

3.03  , 

3.34 

4.99 

24 

1.65 

1.73 

2.59 

51 

3.15 

3*45 

5.14 

25 

1.68 

1.77 

2.65 

52 

3.24 

3,56 

5  30 

26 

1.71 

1.79 

2.70 

53 

3.35 

3.68 

5.47 

27 

1.73 

1.83 

2.76 

54 

3.46 

3,82 

5.65 

28 

1.77 

1.86 

2.81 

55 

3.57 

3.96 

5.85 

29 

1.80 

1.89 

2.87 

56 

3.69 

4.1  1 

6.16 

30 

1.82 

1.92 

2-93 

57 

3.83 

4.26 

6,27 

31 

1.85 

1.96 

3.0,0 

58 

3-97 

4.43 

6.50 

32 

1.89 

1  99 

3.06 

59 

4.13 

4.62 

6.75 

33 

1.92 

2.02 

3.14 

60 

4.29 

4.80 

7.00 

34 

1.95 

2-07 

3.21 

61 

4.47 

4.99 

7.28 

35 

2.00 

213 

3.28 

62 

4.60 

5.22 

7.57 

36 

2.03 

2-18 

3.37 

63 

4.81 

5.49 

7.89 

37 

2.07 

2.24 

3.45 

64 

4.99 

5.76 

8.23 

38 

2.12 

2.30 

;  3.54 

65 

5.23 

6.09 

8  62 

39 

2.15 

2.35 

3.64 

66 

5.50 

6.47 

9.03 

40 

2.23 

2.43 

3.72 

67 

5.80 

6.89 

9.47 

26 

TABLE,  No.  Ill: 


Showing  the  annuity  which  may  be  purchased  for  one  hun¬ 
dred  dollars ,  on  a  single  life ,  from  birth  to  the  age  of 
ninety-jive* 


U 

a 

o 

o 

CO 

c 

6 

bo 

< 

ai 

°I 

u  o 

<L> 

.0  3 

C  to 

s  i  . 
1% 

Age. 

<D  . 

^  <D 

Si 

O  6. 

C/3 

11 

5s  2 

So 

<3 

5  . 

< V  GJ 

J1 

c  ” 

d  c 

o  es 
ci  .t: 
o  s 

c.  c 

|  0. 

li 

e  «=- 

P.  p 

1a 

5  rt 

to 

« 

fc 

a 

& 

cS 

P3 

Birth 

9.306 

10.74 

32 

13.496 

7.40 

64 

7.889 

,12.67 

6  mo. 

11.837 

8.44 

33 

13,377 

7.47 

65 

7.639 

1 3.07 

1  year 

12.141 

8.23 

34 

13.254 

7.54 

66 

7.385 

13.54 

3 

14.091 

7.09 

35 

13.127 

7  61 

67 

7.126 

14.03. 

3 

14.841 

6.73 

36 

12.995 

7.69 

68 

6.862 

14.57 

4 

15.343 

6.5  1 

37 

12.861 

7  77 

69 

6.595 

15.15 

5 

15.568 

6.42 

38 

12.721 

7.86 

70 

6,324 

15.81 

6 

15.793 

6  33 

39 

12.577 

7.95 

71 

6.052 

16.52 

7 

15.924 

6.27 

1  40 

12.428 

8.04 

72 

5.779 

17.30 

8 

15  987 

6  25 

41 

12.279 

8.14 

73 

5.507 

18.16 

9 

15.970 

6.26 

-  42 

12.128 

8.24 

74 

5.239 

19.08 

10 

15,895 

6.29 

43 

1 1.977 

8.34 

75 

4.981 

20.07 

11 

15-795 

6.33 

44 

1  1.820 

8.46 

76 

4.736 

21.11 

12 

15.683 

6.37 

45 

1  1.660 

8.57 

77 

4.490 

22.27 

1 3 

15.567 

6.42 

46 

1  1.494 

8.70 

78 

4-236 

23.60 

14 

15.445 

6.47 

47 

11.323 

8.83 

79 

3.964 

25.22 

15 

15.317 

6.52 

48 

11.146 

8.97 

80 

3.690 

27.10 

16 

15  183 

6.58 

49 

10.965 

9.12 

81 

3.426 

29.18 

17 

15.050 

6.64 

50 

10.782 

9.27 

82 

3.171 

31.53 

18 

14.927 

6  70 

51 

10.602 

9.43 

83 

2.937 

34.04 

19 

14.815 

6.75 

52 

10.421 

9.59 

84 

2.759 

36.24 

20 

14.707 

6.79 

53 

10.235 

9.77 

85 

2.595 

38.53 

21 

14.612 

6.84 

54 

10.045 

9.95 

86 

2.444 

40.91 

22 

14.524 

6.87 

55 

9.851 

10. 15 

87 

2.303 

43.42 

23 

14.433 

6.92 

56 

9.652 

10.36 

88 

2.184 

45.78 

24 

14.340 

6.97 

57 

9.448 

10.58 

89 

2.021 

49.48 

25 

14.245 

7.02 

58 

9.241 

10.82 

90 

1.810 

55.24 

26 

14.146 

7.06 

59 

9.028 

1 1.18 

91 

1.520 

65.78 

27 

L4.045 

7.12 

60 

8.8  i  1 

1  1.35 

92 

1.211 

82.56 

28 

15.941 

7.17 

61 

8.590 

11.64 

93 

0.857 

1  16.68 

29 

13.835 

7.22 

62 

8.364 

1  1.95 

94 

0.551 

18  1.48 

30 

13.725 

7.28 

63 

8.129 

12.30 

95 

0.250 

400.00 

31 

1 3.6 1 3 

7.34 

1 

27 

TABLE,  No.  IV, 


Showing  Hie  stun  required  in  a  gross  payment ,  or  in  annual 
instalments ,  during  the  joint  lives  of  two  persons ,  whose 
difference  of  age  is  five  years,  for  an  annuity  of  one  hun¬ 
dred  dollars,  to  he  enjoyed  by  the  youngest  life,  aftet 
the  death  of  the  eldest . 


Ages. 

Gross 

Annual 

payment. 

instalment. 

25  and  20 

316.80 

26.42 

30  and  25 

322.10 

28.01 

35  and  30 

327.40 

29.89 

40  and  35 

332.90 

32.12 

45  and  40 

335.30 

34.77 

50  and  45 

337.40 

37.94 

55  and  50 

332.90 

41.19 

60  and  55 

326.50 

44.89 

65  and  60 

317.10 

49-76 

70  and  65 

306.30 

56.96. 

75  and  70 

280.90 

64.62 

80  and  75 

248.10 

73.38 

85  and  80 

203.90 

79.25 

90  and  85 

150.40 

73.80 

95  and  90 

162.50 

138.2,9 

TABLE,  No.  V. 

Showing  the  value  of  an  annuity  of  one  hundred  dollars, 
at  the  several  ages  mentioned ,  deferred  for  the  space  of 
ten  years . 


Age. 

Sum. 

Rate  per  cent. 

40 

520.26 

19.22 

45 

455.80 

21.94 

50 

385.87 

25.91 

55 

312.67 

31.98 

60 

234.69 

42.61 

65 

155.89 

64.14 

28 

TABLE,  No.  VI. 

Showing  the  sum  which  may  he  received  at  the  several  age# 
of  twenty-one,  forty-jive,  and  fifty  five,  for  one  hundred 
dollars,  paid  at  the  respective  ages  below,  and  also  the 
equivalent  annuity ;  or 


A  table  of  Endowments  for  Children, 

AND  DEFERRED  ANNUITIES. 


21. 

45. 

55. 

Ages. 

1  Sum  re¬ 
ceivable,  or 
{  endowment. 

J  Equivalent. 

|  annuity. 

Sum  re¬ 
ceivable,  or 
endowment. 

1 

Equivalent 
annuity.  1 

Sum  re¬ 

ceivable;  or 
endowment. 

Equivalent 

annuity. 

Birth 

641.43 

43.87 

3,222.45 

276.16 

6,965.07 

706.95 

3  mo. 

560.89 

38.36 

2,818.12 

241.51 

6,090.56 

618.19 

6  mo. 

524.36 

35.86 

2,634.56 

225.78 

5,693.85 

577.92 

9  mo. 

488.60 

33.42 

2,454.92 

210.38 

5,305.60 

538.51 

1  year 

453.57 

31.02 

2,278.92 

195.30 

4,925.23 

499.91 

2 

363.71 

24.87 

1,827.40 

156.61 

3,949.40 

400.86 

3 

322.51 

22.05 

1,620.42 

188.86 

3,502.07 

3  55.46 

4 

291.98 

19.97 

1,467.01 

125.72 

3,170.53 

321.80 

5 

269.58 

18.43 

1,354.46 

116.07 

2,927.27 

297.1  f 

6 

249.18 

17.04 

1,251.98 

107.29 

2,705.80 

274.63 

7 

231.84 

15.85 

1,164.83 

99  82 

2,517.46 

255.52 

8 

216.70 

14.82 

1,088.74 

93.30 

2.353.07 

238.83 

9 

1,022.66 

87.64 

2,210.19 

224.33 

10 

963.77 

82.5-9 

2,082.92 

21  1.41 

1  1 

909.47 

77.94 

1,965.56 

1  99.50 

12 

858.46 

73.57 

1,855.31 

188.31 

13 

810.24 

69.43 

1,751.11 

177.73 

14 

764.67 

65.53 

1,652.62 

167.74 

15 

721.61 

61.84 

1,559.55 

158.29 

16 

680.91 

58.35 

1,471.61 

149.36 

17 

642.09 

55.02 

1,387.69 

140.85 

18 

604. 84 

51.83 

1,307.20 

132.68 

19 

569.14 

48.77 

1,230.05 

124.85 

20 

535*06 

45.85 

1,156. 38 

117.37 

21 

502.43 

43.05 

1,085.86 

1  10.21 

22 

471.41 

40.39 

1,018.84 

103.41 

23 

442.27 

37.90 

955.71 

97.00 

24 

414.72 

35.53 

896.29 

90.97 

35 

388.84  . 

33.32 

840.37 

85.2'9 

29 


TABLE,  No.  VI. — continued. 


45. 

55. 

Age. 

U  .J 

°  G 

«  a 

£  'u 

quivalent 

annuity.  1 

um  re-  I 

eivable,  or 

ndowment.  j 

quivalent 

annuity. 

O)  o  S 

a 

c n  o  v 

26 

364.49 

31.20 

787.74 

79.95 

27 

341.58 

29.27 

738.23 

74.93 

28 

320.02 

27.42 

691.63 

70.20 

29 

299.74 

25.68 

647.80 

65.75 

30 

280.67 

24.05 

606.58 

61.56 

31 

262.73 

22.51 

567.81 

57.63 

32 

245.86 

.  21.07 

531.36 

53.93 

33 

230.01 

19.71 

497.10 

50.45 

34 

215.10 

18.42 

464.89 

47.17 

SS 

201.10 

17.23 

434.62 

44.1  ! 

30 


EXPLANATION  OF  THE  TABLES. 

No.  I, 

Shows  the  expectation  of  life  at  the  different  places 
therein  named*  that  is,  the  average  time  to  which  persons 
of  the  several  ages  expressed,  have  an  equal  chance  of 
living. 

No.  II, 

Shows  the  premium  demanded  by  the  Company  at 
the  several  ages  described,  for  the  different  periods  of 
one  year,  seven  years,  and  for  the  whole  duration  of 
life;  that  is,  until  the  life  insured  shall  decease. 

Both  these  tables  are  carried  to  the  age  of  6  7  years, 
after  which  it  is  supposed  that  few  insurances  will  be 
applied  for,  as  the  premiums  must  increase  more 
rapidly;  yet  the  company  are  ready  to  insure  at  any  age 
on  the  same  principles. 

No.  Ill, 

Shows  the  annuity  that  the  Company  will  grant  at 
any  age,  and  is  carried  as  far  as  the  age  of  80.  The 
first  column  shows  the  age,  the  second  the  number  of 
years  purchase  demanded,  the  third  the  rate  per  cent, 
the  annuitant  will  receive  for  his  money. 

No.  IV, 

Shows  the  sum  demanded  for  an  annuity  of  one 
hundred  dollars  during  the  life  of  a  wife  after  the  death 
of  her  husband,  supposing  the  age  of  the  husband  to 
exceed  that  of  the  wife,  five  years.  Where  the  differ¬ 
ence  is  less,  the  sum  demanded  will  be  decreased  in 
proportion.  The first  column  shows  the  respective  ages. 


31 


the  second  the  payment  in  a  gross  sum  to  be  paid  down 
at  the  time  of  making  the  contract,  the  third  the  annnal 
payment  that  will  be  received  during  the  continuance 
of  the  joint  lives  in  li,eu  of  such  gross  sum.  This  table 
commences  with  25  and  20  and  is  continued  by  inter¬ 
vals  of  5  years  to  95  and  90;  but  the  Company  will  con¬ 
tract  for  any  other  ages. 

No.  V 

Shows  the  sum  demanded  for  an  annuity  of  one  hun¬ 
dred  dollars  deferred  for  ten  years..  Six  ages  only  are 
taken  here  merely  to  show  the  nature  and  advantage  of 
such  contracts;  but  the  principle  is  further  exemplified  in 

No.  VI, 

Which  exhibits  an  easy  mode  of  providing  for 
children,  by  a  reversionary  sum  or  endowment,  to  be 
received  at  a  future  given  period.  This  table  is  calcu¬ 
lated  upon  its  being  receivable  at  21,  at  45,  and  55  years, 
and,  as  in  some  cases  an  equivalent  annuity  would  be 
preferred,  a  column  containing  the  rates  of  such  an¬ 
nuities  is  adjoined  to  the  sums  in  each  term.  In  the 
first  term,  the  table  is  carried  no  higher  than  8  years, 
as  it  is  not  probable  that  endowments  payable  within 
13  years,  will  be  wanted.  For  the  other  periods  the 
table  is  carried  as  high  as  35  years,  and  may  be  con¬ 
sidered  as  a  sequel  to  No.  'V,  the  table  of  deferred  an¬ 
nuities. 


USE  OF  THE  TABLES. 

1st.  Suppose  it  were  desirable  to  know  the  probable 
term  to  which  a  given  life  might  extend,  say  of  a  person 
aged  40, 


32 


Look  in  the  table  of  expectations  No.  I.  in  the  first 
column  for  the  number  40,  opposite  it  in  the  other 
columns  will  be  found  23.08—22.19,  &c.  that  is,  such 
a  person  has  an  equal  chance  of  living  23  years  and  8 
hundredth  parts  of  a  year  at  Northampton,  22  years  and 
19  hundredth  parts  of  a  year,  &c.  as  in  the  respective  co¬ 
lumns,  calculated  for  different  places. 

2d.  Suppose  it  is  required  to  know  the  premium 
demanded  for  the  insurance  of  8100  on  the  life  of  a 
person  aged  40.  Find  in  the  column  of  ages  (table 
No.  II.)  the  age  40.  In  the  next  column  opposite  is 
§2.23;  in  the  third  column  82.43,  and  in  the  fourth 
column  83.72,  which  is  the  answer;  or,  in  other  words, 
that  82.23  is  the  premium  for  a  single  year,  82.43 
per  annum  on  a  policy  for  7  years;  and  83.72  per 
annum  on  a  policy  for  the  whole  duration  of  life,  to 
secure  to  the  heir  or  nominee  a  payment  of  8100  at  his 
decease. 

3rd.  Suppose  an  annuity  of  §200  was  wanted  for 
a  person  aged  60  years,  to  commence  immediately.  To 
find  the  sum  demanded  for  it,  look  in  table  III,  find  in 
the  column  of  ages  the  number  60,  opposite  to  it  in  the 
next  column  is  8.81 1,  or  the  number  of  years  purchase. 
Multiply  this  sum  by  8200  the  annuity,  and  the  product 
81762  is  the  answer,  which  is  at  the  rate  of  811.35  per 
cent,  agreeably  to  the  next  column. 

4th.  Suppose  a  man  aged  30,  whose  wife’s  age  is  25, 
wishes  to  provide  an  annuity  of  8500  for  her  tp  com¬ 
mence  at  his  decease,  and  desires  to  know  what  pay¬ 
ment  will  be  required  therefor.  Find  in  table  IV,  in  the 
Column  of  ages,  the  number  30  and  25,  and  opposite  in 
the  next  column  will  be  seen  322.10,  which  is  the  sum 


demanded  for  an  annuity  of  $100.  Multiply  this  by  5, 
and  the  product  ($1610.50)  is  the  answer.  The  sum 
(28.01)  in  the  next  column,  multiplied  in  like  manner, 
and  amounting  to  $140.05,  is  the  annual  payment  re¬ 
quired  during  the  joint  lives,  in  lieu  of  the  gross  sum. 

5th.  A  man  aged  50,  thinking  he  shall  be  able  for 
ten  years  longer  to  maintain  himself  by  his  labour,  is 
desirous  out  of  the  property  he  is  now  possessed  of,  to 
provide  an  annuity  of  $500,  after  he  shall  have  arrived 
at  that  period,  and  wants  to  know  what  he  must  pay  for 
it  in  present  money.  By  looking  at  table  No.  V,  opposite 
50  in  the  first  column,  he  will  find  385.87  as  the  value 
of  an  annuity  of  $100,  which,  multiplied  by  5,  gives 
$1929.35,  the  sum  required.  The  last  column  shows 
the  rate  per  cent,  per  annum,  viz.  25  dollars  91  cents, 
that  he  would  receive  on  the  sum  paid  into  the  office. 

6.  Suppose  it  were  inquired  what  sum  a  child  just 
born  might  receive  at  a  future  day,  for  $500  paid  imme- 
iiately  to  the  company.  Opposite  birth  in  the  column 
of  ages  in  table  VI,  and  under  the  number  21,  will  be 
found  in  the  first  column  641.43,  which  being  the  sum 
illowed  to  children  of  that  age,  on  their  attaining  the  age 
of  21  for  $100  paid  in,  if  multiplied  by  5  gives  $3207.15 
md  43.87  in  the  second  column,  multiplied  in  the  same 
manner,  gives  $219.35,  the  annuity  equivalent.  In  the 
ike  manner,  by  multiplying  the  sums  in  the  columns 
mder  the  numbers  45  and  55,  will  be  found  the  sums 
•espectively  payable  to  such  a  child  on  its  arrival  at  the 
ige  of  45  or  55,  for  the  $500  paid  in  at  the  time  of  its 
firth. 


F 


34 


Form  of  an  application  for  an  annuity  to  commence  im¬ 
mediately. 
of 

on  behalf  of 

desires  to  purchase  an  annuity  of  dollars  for 

the  life  of  to  be  paid 

half  yearly  on  the  day  of  and  the  day  of 
annually,  the  first  payment  to  be  made  on  the  day  or] 
the  said  having  been  born  at  , 

on  the  day  of 

This  declaration  to  be  the  basis  of  the  agreement;  and  il 
any  thing  false  or  fraudulent  is  contained  therein,  all 
monies  paid  or  which  shall  be  paid,  in  consequence! 
thereof  shall  be  forfeited. 

Date, 

Natural  marks 

Form  of  an  application  for  a  deferred  annuity . 
of 

on  behalf  of 

desires  to  purchase  an  annuity  of  dollars  foi 

the  life  of 

to  commence  on  attaining  the  age  of 
to  be  paid  half  yearly  on  the  day  of  and  the 
day  of  annually,  the  first  payment  to  be  made  on  the 
day  of  the  said  having  been  born  a 

on  the  day  of 

This  declaration  to  be  the  basis  of  the  agreement;  and  i 
any  thing  false  or  fraudulent  is  contained  therein,  ai 
monies  paid  or  which  shall  be  paid,  in  consequence 
thereof  shall  be  forfeited. 

Date, 

Natural  marks 


35 


Form  of  an  application  for  a  reversionary  payment  or 
Endowment . 
of 

on  behalf  of 

desires  to  purchase  an  endowment  of  dollars  to 

be  paid  to 

on  attaining  the  age  of  the  said 

having  been  born  at  on  the  day  of 

This  declaration  to  be  the  basis  of  the  agreement;  and  if 
any  thing  false  or  fraudulent  is  contained  therein,  all 
monies  paid,  or  which  shall  be  paid,  in  consequence 
thereof  shall  be  forfeited. 

Date, 

Natural  marks 


THE  SUBSTANCE  OF  A  DECLARATION 
required  to  be  made  and  signed  by  or  on  behalf  of  a 
person  who  proposes  to  make  an  insurance  on  his  or  her 
own  life . 

born  in 


but  now  of 


intending  to  make  an  insurance 
with  the  Pennsylvania  Company  for  insurances  on 
lives,  and  granting  annuities”  in  the  sum  of 

upon  my  own  life  for 
do  hereby  declare  that  my  age 
does  not  exceed  ;  that  I  have 

had  the  small -pox  or  been  vaccinated,  and  that 
I  am  not  afflicted  with  any  disorder  which  tends  to  the 
shortening  of  life;  and  I  do  hereby  agree  that  this  decla¬ 
ration  be  the  basis  of  the  contract  between  the  said 
Company  and  me,  and  that  if  any  untrue  averment  is 


56 


contained  in  this  declaration,  all  monies  which  shall  have 
been  paid  to  the  Company  upon  account  of  the  in¬ 
surance,  made  or  to  be  made,  in  consequence  thereof 
shall  be  forfeited.  Dated  the  day 

of  in  the  year  of  our  Lord  one  thou¬ 

sand  eight  hundred  and 

THE  SUBSTANCE  OF  A  DECLARATION 

required  to  be  made  and  signed  by  or  on  behalf  of  a 
person  who  proposes  to  make  an  insurance  on  the  life  of 
another . 

I  of 

intending  to  make  insurance  with  “  the  Pennsylvania 
Company  for  insurances  on  lives,  and  granting  annuities” 
in  the  sum  of 

upon  the  life  of  born  at 

in 


do  hereby  declare  that  the  said 

has  not  any  disorder  which  tends  to  the  shortening  oi 
life:  that  has  had  the  small-pox  or  been  vacci¬ 
nated;  and  that  the  age  of  the  said  does  not 

exceed  years;  and  that  I  have  an 

interest  in  the  life  of  the  said  to  the  full 

amount  of  the  said  sum  of 

and  I  do  hereby  agree  that  this  declaration  be  the  basis 
of  the  contract  between  the  said  Company  and  me;  and 
that  if  any  untrue  averment  is  contained  in  this  declara¬ 
tion,  all  monies  which  shall  have  been  paid  to  the  Com¬ 
pany  upon  account  of  the  insurance  made  or  to  be  made 
in  consequence  thereof,  shall  be  forfeited.  Dated 

t]ie  day  of  in  the  year  of  our 

Lord,  one  thousand  eight  hundred  and 


AN  ACT 


To  incorporate  the  Pennsylvania  Company  for  insurance  on 
lives,  granting  annuities,  and  other  purposes,  passed 
March  10,  1812, 

Sect.  1.  Be  it  enacted  by  the  Senate  and  House  of 
Representatives  of  the  Commonwealth  of  Pennsylvania 
in  General  Assembly  met ,  and  it  is  hereby  enacted  by  the 
authority  of  the  same: — That  John  Welsh,  John  War¬ 
der,  and  Jacob  Shoemaker,  or  any  two  of  them,  shall  be, 
and  they  are  hereby  constituted  and  appointed  commis¬ 
sioners,  whose  duty  it  shall  be  within  thirty  days  after 
the  passing  of  this  act,  first  having  given  ten  days  no¬ 
tice  in  two  or  more  of  the  daily  newspapers  published 
in  the  city  of  Philadelphia,  to  open  a  book  at  some  pub¬ 
lic  and  convenient  place  in  said  city,  and  therein  to 
transcribe  and  insert  the  names  of  all  persons  being  citi¬ 
zens  or  residents  of  this  Commonwealth,  who  have  in 
writing  associated  under  the  name  and  style  of  “  The 
P ennsylvania  Company  for  assurances  on  lives ,  and 
granting  annuities  and  reversions and  also  shall  receive 
and  take  in  the  said  book  the  subscriptions  of  all  such 
other  persons,  being  citizens  or  residents  as  aforesaid, 
as  shall  offer  to  subscribe  and  join  in  the  said  associa¬ 
tion,  together  with  the  number  of  shares  by  such  per¬ 
sons  respectively  taken  and  subscribed  for;  and  the  said 
book  shall  be  kept  and  remain  open  for  three  successive 
days,  from  ten  o’clock  in  the  forenoon  until  three  o’clock 
in  the  afternoon  of  each  of  the  said  days,  for  receiving 


Commis¬ 
sioners  ap¬ 
pointed. 


Their  du-  jj 
ties  deft-  jj 
ned.  \ 


Who  may  i! 
subscribe.' 


Books  to  •  3 

be  open 

three  day Vj 


38 


■Subscrip¬ 
tion  limit¬ 
ed. 

Subscrip¬ 
tion  to  be 
'■reduced 
pro  rata  if 
more  shall 
be  subscri¬ 
bed  than 
the  law  al¬ 
lows. 


Limitation 
of  indivi¬ 
dual  sub¬ 
scription. 


The  sub¬ 
scribers  in- 
corpora- 
;ted. 


[Style  and 
'[title  of  the 
'  corpora¬ 
tion. 


I 


the  subscriptions  aforesaid,  after  which  time,  if  the 
whole  number  of  shares  shall  amount  to  five  thousand, 
no  additional  subscriptions  shall  be  permitted  or  allowed 
by  the  said  commissioners;  but  if  the  whole  number  of 
shares  then  so  taken  and  subscribed  for,  shall  exceed 
five  thousand,  all  subscriptions  above  five  shares  shall 
be  reduced  pro  rata  to  the  number  of  five  thousand;  and 
if  the  whole  number  of  shares  then  taken  and  subscribed 
for  shall  not  amount  to  five  thousand,  the  said  commis¬ 
sioners  may  continue  the  said  book  open  from  day  to 
day,  until  the  whole  number  of  five  thousand  shares  are 
taken  and  subscribed  for;  Provided ,  That  no  person 
shall  within  the  first  three  days  the  books  are  open, 
either  in  his  own  name  or  by  agency,  subscribe  for  a 
greater  number  than  ten  shares. 

Sect.  2.  And  be  it  further  enacted  by  the  authority 
aforesaid , — That  the  persons  whose  names  shall  be  so 
inserted  in  the  said  book,  their  successors  and  assigns, 
shall  be,  and  they  are  hereby  created  and  constituted  a 
body  politic  and  corporate,  and  by  the  name,  style,  and 
title  of  “  The  Pennsylvania  Company  for  insurances  on 
lives ,  and  granting  annuities ,”  and  they  and  their  suc¬ 
cessors  are  hereby  ordained,  constituted  and  declared  to 
be  a  body  politic  and  corporate  in  fact  and  in  law,  by 
the  name  aforesaid;  and  they  and  their  successors,  shall 
and  may  have  continual  succession,  and  be  capable  of 
suing  and  being  sued,  pleading  and  being  impleaded, 
answered  and  being  answered  unto,  defending  and  being 
defended,  in  all  courts  and  places  whatsoever,  in  all 
manner  of  actions,  suits,  complaints,  matters  and  causes, 
whatever;  and  they  and  their  successors  may  have  and 
use  a  common  seal,  make  and  change  and  alter  the 


39 


same  at  their  pleasure,  and  also  they  and  their  succes¬ 
sors  by  the  same  name  and  style,  shall  be  in  law,  capa¬ 
ble  of  purchasing,  holding,  cultivating,  improving,  and 
conveying,  any  estate,  real  or  personal,  for  the  use  of 
the  said  corporation;  Provided ,  That  the  real  estate 
shall  be  only  such  as  shall  be  necessary  to  accommo¬ 
date  the  said  corporation  in  the  transaction  of  the  bu¬ 
siness  thereof,  or  shall  be  taken  and  held  in  security  for 
the  payment  of  debts  due  to  the  said  corporation;  and 
the  said  corporation  shall  have  power  to  ordain  and  es¬ 
tablish  and  put  in  execution  such  by-laws,  ordinances, 
and  regulations,  as  shall  be  necessary  for  the  govern¬ 
ment  thereof,  not  being  contrary  to  the  constitution  of 
this  state  or  of  the  United  States;  and  for  making  where¬ 
of  the  stockholders  shall  be  convened  on  the  third  Mon¬ 
day  of  January,  annually.  And  such  other  general  meet¬ 
ings  of  the  stockholders,  shall  and  may  from  time  to 
time,  for  the  purpose  aforesaid,  be  called  by  the  direct¬ 
ors,  or  by  any  number  of  the  stockholders  holding  one 
thousand  shares,  as  they  shall  respectively  deem  neces¬ 
sary,  and  the  said  corporation  shall  have  power  generally 
to  do  and  execute  all  matters  and  things  which  a  corpo¬ 
ration  or  body  politic  may  or  can  lawfully  do  and  exe¬ 
cute,  subject  to  all  rules  and  regulations,  restrictions, 
limitations,  and  provisions,  hereinafter  described  and  de¬ 
clared:  Provided ,  That  the  clear  yearly  income  of  the 
said  corporation  upon  the  real  estate  which  they  are 
hereby  authorised  to  hold,  shall  not  exceed  ten  thou¬ 
sand  dollars. 

Sect.  3.  And  be  it  further  enacted  by  the  authority 
aforesaid; — That  the  said  capital  stock  of  the  said  cor¬ 
poration  shall  be  five  hundred  thousand  dollars,  divided 


May  hold 
real  anti 
personal 
estates. 


Real  estate 
limited. 


Corpora¬ 
tion  may 
make  by¬ 
laws  for 
the  go¬ 
vernment 
thereof, 
which 
shall  be 
approved 
by  the 
stockhold¬ 
ers  annu¬ 
ally. 

How  gene¬ 
ral  meet¬ 
ings  may 
be  called. 


Yearly  in¬ 
come  iimi- 
ted. 


Amount  of 
the  capital 
stock,  and 
the  shares. 


40 


Manner  of 
payment, 
and  notice 
to  be  given 


Proceed¬ 
ings  to  be 
had  if  sub¬ 
scribers  do 
not  make 
payment. 


into  five  thousand  shares  of  one  hundred  dollars  each, 
and  to  be  raised,  constituted,  and  composed  of  the  sub¬ 
scriptions  heretofore  made,  or  hereafter  to  be  made  by 
virtue  of  the  provisions  contained  in  the  first  section  of 
this  act,  and  the  same  shall  be  paid  for  and  satisfied  in 
manner  following:  That  is  to  say,  each  and  every  sub¬ 
scriber  shall  within  ten  days  after  public  notice  given 
by  the  president  and  directors  hereinafter  named,  in  any 
two  of  the  daily  papers  printed  in  the  city  of  Philadel¬ 
phia,  pay,  or  cause  to  be  paid,  to  the  said  president  and 
directors  for  the  use  of  the  said  corporation,  the  sum  of 
twenty  dollars,  in  part  of  each  share  so  subscribed  for, 
and  the  residue  of  the  money  payable  on  each  and  every 
share,  shall  be  paid  to  the  president  and  directors  of  the 
said  corporation  in  such  sum  or  sums,  and  at  such  time 
or  times  as  they,  by  public  notice  in  two  of  the  daily 
papers  printed  in  the  said  city,  for  at  least  thirty  days, 
shall  in  their  discretion  direct  and  appoint.  And  if  any 
subscriber  shall  refuse  or  neglect  to  make  the  first  pay¬ 
ment  as  aforesaid,  he  or  she,  shall  cease  to  be  deemed 
a  subscriber  or  member  of  the  said  corporation,  and  his 
or  her  subscription  shall  be  opened  and  new  subscrip¬ 
tions  received  for  the  number  of  shares  so  forfeited. 
And  if  any  subscriber,  his  or  her  assignee  or  transferee, 
shall  refuse  or  neglect  to  make  any  subsequent  payment, 
called  for  and  demanded  by  the  president  and  directors 
as  aforesaid,  such  subscriber,  his  or  her  assignee  or 
transferee,  shall  pay  an  interest  on  the  amount  of  such 
instalment,  at  the  rate  of  five  per  centum  per  month  for 
the  time  the  payment  of  the  said  instalment  shall  be  de¬ 
ferred  or  delayed  after  the  time  the  same  shall  have  been 
directed  to  be  paid  as  aforesaid,  and  if  the  said  irrstah 


41 


went,  together  with  interest  thereon,  at  the  rate  afore¬ 
said,  shall  not  be  paid  within  six  months  from  the  time 
it  shall  have  been  so  called  for,  and  directed  to  be  paid, 
each  and  every  share  or  shares,  on  which  such  default 
shall  have  been  made,  together  with  the  sum  or  sums 
previously  paid  thereon,  shall  be  forfeited,  and  new  sub¬ 
scriptions  may  be  opened  and  received,  for  the  share 
or  shares  so  forfeited,  at  the  discretion  of  the  stock¬ 
holders  of  the  said  corporation. 

Sect.  4.  And  be  it  further  enacted  by  the  authority 
aforesaid;— That  for  the  well-ordering  of  the  affairs  of  Thirteen 
the  said  corporation,  there  shall  be  thirteen  directors,  fetors 
who  shall  be  citizens  of  this  commonwealth,  and  stock-  sen. 
holders  of  the  said  corporation,  holding  at  least  two  The5r 
shares  each  in  their  own  right,  elected  annually  by  the  quaMca- 
stockholders  at  their  general  meeting  for  that  purpose 
assembled;  and  the  directors  at  their  first  meeting  after  Their 

...  i  #  °  election  to 

-acn  election  shall  choose  one  of  their  number  as  presi-  be  annual, 
ient;  but  in  case  it  should  so  happen  at  any  time  that  an  their  first 
election  of  directors  should  not  be  made  upon  any  day,  theyshaii 
•vhen  pursuant  to  this  act  it  ought  to  have  been  made,  *!dent pre' 
he  said  corporation  shall  not  for  that  cause  be  deemed 
:o  be  dissolved,  and  it  shall  be  lawful  on  any  day,  with-  “tuThe 
n  ninety  days  thereafter,  to  hold  an  election  of  directors  ™d.if  tJ'e 
n  such  mariner  as  shall  have  been  regulated  by  the  laws  not  held 
md  ordinances  of  the  said  corporation,  until  which  appointed^ 
Section  the  president  and  directors  chosen  and  appoint-  other  day 
d  at  the  next  preceding  election  shall  continue  in  office,  pointed^" 
n  case  of  any  director’s  death  or  resignation,  his  place  old  direct- 
hall  be  filled  up  for  the  remainder  of  the  year,  in  such  tSue°inof 
nanner  as  the  ordinances  of  the  said  corporation  shall  ficet‘11 

,  i  ,  . .  _  1  new  ones 

or  that  purpose  direct;  Provided ,  That  the  first  direct;-  an  elected 

F 


4  2 


Names  of 
the  first 
directors. 


Time  they 
shall  con¬ 
tinue  in  of¬ 
fice. 


Votes  of 
the  elect¬ 
ors  to  be 
by  ballot. 


Ratio  of 
votes. 


Whole 
number  of 
votes 

which  any 
subscriber 
may  give. 


Proxy 
voting  al¬ 
lowed  and 
regulated. 


ors  shall  be  Joseph  Ball,  John  Claxton,  Lewis  D.  Car- 
pentier,  Jacob  Sperry,  Joseph  Peace,  Patrick  Gernon, 
Henry  Lentz,  Thomas  P.  Cope,  Mahlon  Hutchinson, 
John  Bohlen,  Andrew  Pettit,  John  K.  Helmuth,  and 
Samuel  Yorke,  who  shall  hold  their  offices  until  the 
third  Monday  of  January,  in  the  year  of  our  Lord,  one 
thousand  eight  hundred  and  thirteen,  and  until  new  di¬ 
rectors  shall  be  first  chosen;  and  the  said  directors 
shall,  within  ten  days  after  the  passing  of  this  act,  meet 
and  appoint  their  president. 

Sect.  5.  And  be  it  further  enacted  by  the  authority 
aforesaid;— That  the  votes  of  the  stockholders  for  di¬ 
rectors  shall  be  by  ballot,  and  the  election  of  directors 
and  for  deciding  all  questions  in  a  general  meeting  of 
the  stockholders,  the  ratio  of  the  votes  shall  be  as  fol¬ 
lows,  to  wit:  A  stockholder  having  five  shares  or  less 
shall  have  one  vote  for  each  share  so  held;  having  fifty 
shares  or  less,  shall  have  one  vote  for  every  five  shares 
he  shall  so  hold  above  five  shares;  having  one  hun¬ 
dred  shares  or  less  shall  have  one  vote,  for  every  ten 
shares  he  shall  so  hold  above  fifty  shares;  having  above 
one  hundred  shares,  he  shall  have  one  vote,  for  every 
twenty  shares  he  shall  so  hold  above  one  hundred  shares; 
but  no  stockholder  shall  be  entitled  in  his  own  right,  or 
as  a  proxy,  to  a  greater  number  than  thirty  votes;  nor 
shall  any  stockholder  vote  at  any  election  for  directors 
unless  the  share  or  shares  upon  which  he  or  she  may  claim 
to  vote,  shall  have  been  standing  in  his  or  her  name  in  the 
books  of  the  said  corporation,  for  at  least  three  months 
previous  to  such  election,  and  such  stockholder  may 
vote  by  proxy:  Provided ,  That  no  vote  shall  be  received 
on  any  proxy  more  than  nine  months  after  the  date  of 
said  proxy,  and  further,  that  no  transfer  of  proxy  shall 


43 


be  allowed,  and  that  no  person  shall  be  allowed  to  vote 
as  the  proxy  of  more  than  one  stockholder. 

Sect.  6.  And  be  it  further  enacted  by  the  authority 
aforesaid; — That  the  directors  of  the  said  corporation, 
for  the  time  being,  four  of  whom  with  the  president,  or 
in  case  of  his  absence,  seven  shall  be  a  quorum,  shall 
have  power  to  appoint  such  officers,  clerks,  agents,  and 
other  persons,  as  shall  be  necessary  for  conducting  and 
executing  the  business  of  the  said  corporation,  as  well 
in  the  said  city  of  Philadelphia,  as  elsewhere,  and  to  al¬ 
low  the  said  persons  so  appointed,  such  compensation 
for  their  services  respectively,  as  they  shall  deem  rea¬ 
sonable,  and  generally  to  exercise  all  other  powers  and 
authorities  for  well- governing  and  ordering  the  affairs 
and  funds  of  the  said  corporation,  as  this  act  confers  and 
allows. 

Sect.  7.  And  be  it  further  enacted  by  the  authority 
aforesaid; — That  it  may  be  lawful  for  the  said  corpora¬ 
tion  to  invest  the  capital  stock  thereof,  and  all  monies 
received  for  premiums  of  insurance,  and  for  the  grant 
and  sale  of  annuities  and  other  purposes,  in  any  stock 
of  the  United  States,  or  of  this  state,  or  of  any  chartered 
or  incorporated  bank,  or  in  the  purchase  of  ground- 
1  rents,  or  mortgages,  or  to  lend  the  same  on  good  and 
sufficient  security,  and  also  to  sell  and  dispose  of  and 
transfer  all  or  any  of  the  said  stock  and  securities,  and 
to  invest  the  proceeds  thereof  in  like  and  other  such 
stock  or  securities,  whenever  the  safety  or  immediate 
exigencies  of  the  said  corporation  shall  render  the  same 
.necessary;  Provided ,  That  no  deposit,  loan  of  money 
'upon  interest  (except  in  such  cases  as  may  be  autho¬ 
rised  by  this  section)  or  promissory  note  shall  be  al¬ 
lowed,  made  or  issued  in  the  manner  of  a  banking  in- 


Powers  of 
the  direct¬ 
ors,  in  the 
appoint¬ 
ment  of 
officers, 


And  al¬ 
lowing 
them  a 
compensa¬ 
tion. 

And  theit* 

general 

powers. 


How  the 
capital 
stock  may 
be  invest¬ 
ed. 


Corpora¬ 
tion  not  to 
issue  pror 
missorv 
notes. 


44 


Nor  buy 
or  trade  in 
stock  for 
the  pur¬ 
pose  of 
making1  a 
profit. 


President 
and  Di¬ 
rectors 
may  make 
insurances 
on  lives, 
contract 
for  annui¬ 
ties,  &c. 


All  their 
contracts 
to  be  in 
writing  or 
printed, 
and  signed 
by  the  pro¬ 
per  offi¬ 
cers. 


President 
and  Di¬ 
rectors 
shall  make 
half  yearly 
dividends 
of  the  pro¬ 
fits  of  the 
corpora¬ 
tion,  and 
pay  them 
to  the 
.stockhold¬ 
ers.. 


stitution; — And  provided  also ,  That  nothing  in  this  act 
contained,  shall  be  construed  to  authorize  the  said  cor¬ 
poration  to  buy  or  trade  in  any  stock  whatsoever,  for 
the  purpose  of  making  a  profit  by  such  buying  and 
trading. 

Sect.  8.  And  be  it  further  enacted  by  the  authority 
aforesaid; — That  the  president  and  directors  shall  have 
full  power  on  behalf  of  the  said  corporation  to  make  in¬ 
surances  on  lives  by  sea  and  on  shore,  and  to  contract 
for,  grant  and  sell  annuities,  and  reversionary  payments, 
and  generally  to  make  all  kinds  of  contracts,  in  which 
the  casualties  of  life  and  interest  of  money  are  princi¬ 
pally  involved,  except  as  before  excepted,  and  to  make, 
execute,  and  perfect,  such  and  so  many  contracts,  bar¬ 
gains,  agreements,  policies,  and  other  instruments,  as 
shall  or  may  be  necessary,  and  as  the  nature  of  the  case 
shall  or  may  require;  and  every  such  contract,  bargain, 
agreement,  and  policy,  to  be  made  by  the  said  corpora¬ 
tion,  shall  be  in  writing  or  in  print,  and  shall  be  under 
the  seal  of  the  said  corporation,  signed  by  the  president, 
and  attested  by  the  actuary  or  other  officer  who  may  be 
appointed  by  the  president  and  directors  for  that  pur¬ 
pose. 

Sec  t.  9.  And  be  it  further  enacted  by  the  authority 
aforesaid; — That  the  president  and  directors  shall,  on 
the  first  Monday  of  January,  in  the  year  of  our  Lord, 
one  thousand  eight  hundred  and  thirteen,  and  on  the 
first  Monday  of  July  and  of  January  in  every  year  there¬ 
after,  declare  and  divide  so  much  of  the  profits  of  the 
said  corporation,  as  to  them  shall  appear  safe  and  ad¬ 
visable,  and  the  dividend  so  declared  shall  be  paid  to 
the  respective  stockholders,  agreeably  to  such  rules  as 


45 


the  president  and  directors  shall  make  for  that  pur- 
pose. 

Sec  t6  10.  And  be  it  further  enacted  by  the  authority 
aforesaid; — That  the  shares  of  the  stock  of  the  said  cor¬ 
poration  shall  be  assignable  and  transferable,  according 
to  such  rules  and  regulations  as  the  president  and  di¬ 
rectors  shall  for  that  purpose  ordain  and  establish,  and 
not  otherwise;  Provided ,  That  no  person  or  persons 
shall  hold  or  be  owners  of  any  share  or  shares  of  the 
stock  of  this  corporation,  who  are  not  citizens  of,  or 
resident  in  the  United  States. 

Sect.  11.  And  be  it  further  enacted  by  the  authority 
aforesaid;  That  if  at  any  time  it  shall  appear  to  the 
legislature,  that  the  charter  privileges  hereby  granted 
are  injurious  to  the  public  welfare,  the  power  thereof  to 
repeal  this  act,  shall  not  on  any  conditions  be  denied  or 
impaired;  but  such  repeal  shall  not  affect  any  engage¬ 
ments  to  which  said  Company  may  have  become  a  party 
previously  thereto,  and  that  the  said  Company  shall 
have  a  reasonable  time  to  bring  their  accounts  to  a  final 
settlement  and  termination. 

JOHN  TOD,  Speaker  of  the 

House  of  Representatives . 

P.  C.  LANE,  Speaker  of  the  Senate . 

Approved— the  tenth  day  of  March,  in  the  year 
T  our  Lord,  one.  thousand  eight  hundred  and  twelve. 

SIMON  SNYDER. 


Shares 
may  be 
transfer¬ 
red. 


None  but 
citizens, 
or  resi¬ 
dents  of 
the  United 
States  may 
hold  stock 


Reserva¬ 
tion  as  to 
the  pow¬ 
ers  grant¬ 
ed. 


